Each Birkin bag is painstakingly hand-made by a single craftsman using Hermès’ centuries-old leather-working techniques, a process that can take up to 18 hours or more depending on the material. The amount of work that goes into making a Birkin justifies its high price, says Hermès. But that doesn’t explain everything about the exorbitant cost. According to The Economist, the production cost of a basic Birkin has been estimated to be around USD$800 (RM3,100). But the bags can cost more than ten times that amount.
So what else is going on?